Tether temporarily blacklisted THORChain wallets holding $1.45M in USDT
THORChain's technical co-founder said Tether blacklisted four USDT vault addresses on Friday, locking about $1.45 million. The restriction was lifted roughly two hours later, and the co-founder said trading would resume. Tether and THORChain did not immediately explain the action, which followed recent lawsuits over Tether's freezing of customer funds.
Chad Barraford, THORChain's technical co-founder, reported that four vault addresses tied to the network were blocked from moving USDT on Friday. The affected balance totaled roughly $1.45 million. According to Barraford, the restriction lasted about two hours before Tether removed it, after which THORChain expected trading to continue. He said the project had not received an explanation or prior communication and was seeking contact.
The episode occurred amid recent legal challenges to Tether's freeze powers. Conduit Technology sued this week, claiming a $2.76 million USDT freeze connected to a 2024 Brazilian probe. In August, two Thai nationals sued over an alleged $42.4 million freeze following an informal U.S. Homeland Security Investigations request.
Temporary freezes like this may affect THORChain users, traders, and businesses that rely on USDT for liquidity or payments, even if funds are later released. Such actions could heighten concerns about centralized control over stablecoins and may encourage some users to diversify holdings or seek clearer recourse. The outcome of the recent lawsuits could shape how much confidence people place in issuers' ability to freeze assets, potentially influencing stablecoin adoption and risk management across crypto markets.